Can You Take a Personal Loan While on Maternity Leave?


Maternity leave is a time for rest, healing, and bonding with your new baby—but it can also be a time when finances feel tight. Between reduced income, increased household expenses, and unexpected costs like medical bills or baby care, many new parents find themselves searching for financial support. One common question that arises is: Can you take a personal loan while on maternity leave?

The good news is yes, you can apply for a personal loan while on maternity leave—but there are a few essential things you need to consider before taking this step.

Let’s explore the feasibility, benefits, challenges, and smart tips for getting a personal loan during maternity leave.

Understanding Personal Loans During Maternity Leave

A personal loan is an unsecured form of credit offered by banks, NBFCs, and online lenders. It can be used for a wide range of needs—from medical expenses to childcare costs to general household budgeting.

Since a personal loan doesn’t require collateral, lenders heavily rely on your income, employment status, and credit history to assess your eligibility. Being on maternity leave might raise some concerns for lenders because you’re temporarily not receiving your regular salary, or may be receiving reduced pay.

That said, maternity leave doesn’t automatically disqualify you from securing a personal loan. Here’s how you can make your case stronger.

Factors That Lenders Consider

When evaluating your application for a personal loan during maternity leave, lenders typically look at:

  1. Current Income Stream
    Are you still receiving partial or full pay from your employer during your maternity leave? If yes, this boosts your chances.

  2. Length of Employment
    If you’ve been with the same company for a long time, it reflects job stability, which is a plus.

  3. Spouse or Co-Applicant’s Income
    If your partner has a stable income, applying jointly can improve approval odds for a personal loan.

  4. Existing Debts
    If you’re already juggling EMIs or credit card bills, lenders might be cautious. Low existing debt increases your approval chances.

  5. Credit Score
    A good credit score (typically 700+) shows financial discipline and boosts your credibility as a borrower.

  6. Maternity Leave Duration
    If your return to work is near, lenders may feel more confident in your repayment capacity.

How to Improve Your Chances of Getting a Personal Loan on Maternity Leave

While lenders may hesitate to extend a personal loan to someone with irregular income, there are ways to strengthen your application:

1. Apply with a Co-Borrower

Consider applying for the personal loan jointly with your spouse or a family member who has a stable income. This reduces the lender’s risk and increases your chances of approval.

2. Show Alternative Sources of Income

If you’re receiving rental income, freelance earnings, or dividends from investments, provide documentation. These help lenders view you as financially active.

3. Maintain a High Credit Score

Before applying, check your credit score. If it’s low, take time to pay off debts and improve your credit health. A strong score is one of the biggest factors in personal loan approval.

4. Keep Your Loan Amount Reasonable

Ask for only what you truly need. A smaller loan amount is less risky for lenders and more likely to be approved.

5. Opt for a Pre-Approved Personal Loan

If your bank has already extended a pre-approved personal loan offer based on your previous income or credit behavior, use that opportunity—it often requires minimal documentation.

Why You Might Need a Personal Loan During Maternity Leave

There are several valid reasons why new parents might seek a personal loan during this phase of life:

  • Covering medical bills for childbirth or postnatal care

  • Setting up a nursery or buying baby essentials

  • Managing household bills due to reduced income

  • Paying for hired help or caregivers

  • Funding education or daycare planning for older children

In such cases, a personal loan can provide much-needed breathing room and help maintain your financial stability.

Pros of Taking a Personal Loan on Maternity Leave

  • ✅ No Collateral Required: You don’t need to put your assets at risk to access funds.

  • ✅ Quick Processing: Many lenders disburse personal loans within 24–48 hours.

  • ✅ Flexible Usage: You can use the loan for any purpose without restrictions.

  • ✅ Fixed EMIs: Helps with budgeting during uncertain income periods.

Cons to Be Aware Of

  • ❌ Higher Interest Rates: Especially if your income is limited or your credit score isn’t great.

  • ❌ EMI Burden: Taking on debt during a time of reduced income can create stress.

  • ❌ Eligibility Hurdles: Some lenders may hesitate if you're not drawing regular income.

Alternatives to a Personal Loan on Maternity Leave

If you're unsure about taking a personal loan while on maternity leave, here are a few other options worth considering:

1. Emergency Fund

If you’ve saved up for emergencies, now is the time to dip into that fund instead of borrowing.

2. Salary Advance

Some employers offer salary advances to employees going on leave. This can be a cost-effective alternative.

3. Credit Card EMI Options

For smaller expenses, consider converting your credit card dues into EMIs—often cheaper than personal loan interest rates.

4. Borrowing from Family

If the amount is small and repayment is feasible, borrowing from family or friends could be interest-free.

Tips to Repay a Personal Loan Smoothly Post-Maternity

If you do decide to take a personal loan, plan your repayment smartly to avoid stress later:

  • 🗓️ Automate Your EMIs: Set up auto-debit so you never miss a payment.

  • 📈 Create a Post-Leave Budget: Factor in the EMI into your family’s monthly expenses.

  • 🧾 Track Expenses Closely: Minimize unnecessary spending until the loan is paid off.

  • 💰 Prepay When Possible: Use bonuses or tax refunds to make partial prepayments and reduce interest burden.

Final Thoughts

Taking a personal loan while on maternity leave is possible, but it requires a clear understanding of your financial situation, income streams, and repayment capacity. Lenders may scrutinize your application more closely, but with the right documentation, a co-applicant, and a stable credit history, approval is very much achievable.

Just make sure that borrowing during this sensitive period doesn’t add to your financial stress. Always weigh the benefits against the repayment obligation and consider alternatives before making your decision.

At Fincrif.com, we’re here to help you make the most informed borrowing decisions. Explore more expert insights, compare loan offers, and use our personal loan calculators to find the best fit for your financial needs—whether you're on maternity leave or any other life stage. 

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